Location: Shelby County, IA | Metro: Shelby County, IA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $141,703 | 0.71% | D |
| 3BR | $1,310 | $207,214 | 0.63% | D |
| 4BR | $1,310 | $261,010 | 0.5% | F |
| 5BR | $1,520 | $388,202 | 0.39% | F |
U.S. Census Bureau data (2024)
ZIP code 51537, located in Harlan, IA within the Shelby County, IA metro, presents an interesting comparison to the typical ZIP codes in the area. The Fair Market Rent (FMR) for ZIP 51537 is set at $990 for fiscal year 2026, which is notably higher than the market rent of $790. This indicates that the government's assessment of rental costs is above what the market currently dictates, potentially making it a favorable location for landlords participating in the Section 8 program.
The median home value in ZIP 51537 stands at $202,245, which is lower than the average home values seen in many other ZIP codes within the Shelby County metro. This suggests that the area may be considered a value pocket, offering opportunities for both investment and rental properties at a price point that is attractive to first-time buyers and renters.
The renter share in ZIP 51537 is 23.9%, indicating a moderate level of tenants compared to homeowners. This percentage is slightly higher than some areas but not exceptionally so. Given the combination of below-average home values and a higher-than-average renter share, ZIP 51537 could represent a sweet spot for Section 8 investments. Landlords can benefit from the higher FMR rates while offering affordable housing options to renters who might otherwise struggle to find suitable homes within their budget.
In summary, ZIP 51537 is likely a value pocket within the Shelby County metro, offering a blend of affordability and support through government rental assistance programs. The disparity between the FMR and market rent figures, along with the relatively low home values and moderate renter share, points towards a neighborhood that is well-suited for those looking to leverage the benefits of the Section 8 program without facing the challenges of higher-priced markets.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.